Sharda Cropchem Limited (NSE:SHARDACROP) reported Q2 FY27 revenue of Rs. 1,052 crores, up 13% year-over-year, with EBITDA growing 18% to Rs. 164 crores and margins expanding 70 basis points to 15.6%. The agrochemical company achieved this margin expansion despite a 5.1% decline in volumes, driven by improved pricing, favorable product mix, and positive foreign exchange effects.
The agrochemical segment grew 5% to Rs. 840 crores, while the non-agrochemical segment surged 68% to Rs. 212 crores. Within agrochemicals, insecticides led with 18% growth to Rs. 263 crores, herbicides declined 1% to Rs. 432 crores, and fungicides grew 2% to Rs. 144 crores.
Gross profit expanded 18% to Rs. 378 crores with gross margin improving 140 basis points to 35.9%. Profit before tax, excluding forex gains, rose 17% to Rs. 108 crores.
Geographic performance was mixed. Europe, the company's largest market, declined 7% in agrochemical revenue to Rs. 429 crores, which management attributed to extended heat and drought in Central and Eastern Europe. NAFTA grew 6% to Rs. 227 crores with agrochemical margins reaching approximately 40%, while Latin America jumped 81% to Rs. 128 crores.
For H1 FY27, total revenue reached Rs. 2,125 crores, up 11% year-over-year, with EBITDA growing 22% to Rs. 343 crores and margins expanding 140 basis points to 16.1%.
The company operates through an asset-light model centered on regulatory expertise and market access, maintaining 3,044 product registrations across 80+ countries. Sharda's balance sheet strengthened with total equity increasing to Rs. 3,250 crores and cash growing to Rs. 846 crores. Working capital improved to 70 days from 98 days. Return on capital employed reached 26.0% and return on equity stood at 20.2%.
The company plans FY27 capital expenditure of Rs. 550-600 crores, with 946 product registration applications pending approval. Following the results announcement on November 2, 2026, shares rose 3.07% to $685.50, though the stock remains 47% below its 52-week high of $1,297.